In light of the instability of the Iraqi economic and political environment, the only viable means of delivering reasonably priced international communications to a large number of foreign civilian workers living on the military basis was by installing a sufficient number of phone booths and selling prepaid international calling cards. We established this service in June of 2005.

We offer Coinless Phone Booth Services primarily at two of the four permanent military bases in Iraq: Joint Base Balad (Central Region) and LSA Adder-Ali (Southern Region), as well as seven other temporary military bases throughout Iraq. Although these bases are in remote desert areas, they constitute a total market of over 200,000 personnel. The laborers living on these bases come from various countries including India, Pakistan, Nepal, Bangladesh and Ethiopia, among others. These immigrant workers are brought to Iraq by US government contractors to provide ongoing services for the military contractors, such as solid and liquid waste removal, water delivery, facilities maintenance, dining hall services and laundry. They are picked up at fenced off camps in the morning by military contractor buses and transported to their work sites where they are under close supervision. At the end of the day, they are returned to their respective camps. At no time are these workers given access to any military base facilities, such as: PX/BX (base commissaries), public phones, cinemas, gyms, churches or latrines. Nor are these laborers allowed to have any type of personal phones or radio devices of their own. The laborers have no means of calling home other than our payphones installed at designated locations at the camps.

The way we deliver this service is called Packet Switched Telephony, also known as Voice over Internet Protocol (VoIP). Unlike telephone services that are provided over copper wire and international fiber optic phone networks, VoIP is completely carried over the public internet. We convert the traffic to and from the laborer into digital packets. These packets are subject to the quality of service available on the public internet. Technologies for shaping phone traffic, such as echo cancellation, silence suppression and various compression algorithms are an integral part of the Company's network. We also contract with several outside networks that specialize in routing phone traffic over the internet, called 'Terminators'. The Terminators are responsible for getting our phone traffic onto, and off of, the local phone network in the country that a caller is calling. When a call is initiated, our US switch is programmed to find the least cost and best quality route. Sometimes, the switch will automatically try two or three terminator networks before establishing a VoIP connection.

The advantage of using Packet Switched Telephony for our phone booth business is its low cost. By using the public internet to route traffic, we avoid almost all of the carrier costs associated with wire line and fiber optic public phone networks. The only phone company that we need to access is in the country that the laborer is calling. Our contracted Terminator handles this part of the call: converting our traffic to and from the public internet into a digital or analog format that is accepted by the local phone company.